Sun Life will not redeem outstanding 8R or 9QR preferred shares
Sun Life will not exercise its right to redeem its currently outstanding class A non-cumulative rate reset preferred shares series 8R or class A non-cumulative floating rate preferred shares series 9QR on June 30, 2020.
The decision gives holders of series 8R shares the right to convert all or part of those shares on a one-for-one basis into series 9QR shares, and the holders of series 9QR shares the right to convert those into series 8R shares, on June 30, 2020.
Holders of both classes of shares that do not exercise that option will retain their current holding.
If Sun Life determines that there would be less than one million of either series of shares outstanding after June 30, 2020, then all the remaining shares in the other series will automatically be converted on a one-for-one basis on June 30, 2020. In either case, Sun Life will give a written notice to that effect to any registered holder affected by the preceding minimums on or before June 22, 2020.
Sun Life may redeem all or any part of the outstanding shares of either series for $25.00 per share, together with all declared and unpaid dividends to the date fixed for redemption, on June 30, 2025, and on that day every fifth year thereafter, subject to regulatory approval.
The dividend rate applicable to each share class will be determined on June 1, 2020 and will be announced in a news release on Monday, June 1, 2020.